IMF Releases Fund to Argentina as the Economy Finds a Footing

The International Monetary Fund (IMF) has released US$5.4 billion to Argentina as part of the bailout program announced last year, confirming that the South American country’s economy is recovering from recession.

Even inflation is on ‘a downward path’, the bank said in a statement. The international bank releases funds only after reviewing economic activity in the country it loaned. This is the fourth instalment of the bailout package Argentina is receiving.

“The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all applicable targets under the Fund-supported program,” said IMF Managing Director David Lipton in a statement.

“While it has taken time, these policy efforts are starting to bear fruit…… and the economy is beginning a gradual recovery from last year’s recession.”

The bank has stated that inflation is less likely to rise in the near future.

Many in Argentina hate the IMF, because its loan agreements typically include imposition of spending cuts. Soon after signing the bailout agreement, President Mauricio Macri imposed tax on exportation of certain goods and services.

The measures impacted many companies including Accenture, Globant, Neoris, Belatrix, PwC, and IBM, among others. The president had to disband several ministries, and cut subsidies on utilities including transport, gas and electricity, putting his own electoral prospects in risk.

Sign up for our Nearshore Americas newsletter:

Earlier this year, scientists took to streets in protest against the decision to reduce R&D investment.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

You may also like

Around six million households in Latin America and the Caribbean will not receive remittances this year due to the global economic crisis triggered by the COVID-19 pandemic. The worst-hit would be Central AmericanRead more

Most of the countries in Latin America are gradually reopening their economies, although the number of people infected with coronavirus is rising in some countries, particularly in Brazil. A large majority of countriesRead more

Open banking platform Belvo has raised US$10 million, as it gets ready to capitalize on the growing demand for digital payment services in Latin America. The fintech says it will use the proceeds to open an office inRead more